10th July 2002
BBA GROUP PLC ANNOUNCES THREE ACQUISITIONS TOTALLING $35.6m, AND INVESTMENTS IN AIRCRAFT SERVICING FACILITIES
BBA Group PLC today announces three acquisitions for its Aviation Services division for a total consideration of $35.6m (£23m). It is also opening a fixed base operation ("FBO") servicing aircraft at Toulon, France, and is investing £5m to expand hangar facilities at Luton Airport in the UK.
Of its three acquisitions, two are FBOs in the United States being purchased through BBA's Signature Flight Support subsidiary. It has bought one in Bedford, Mass., from Mercury Aviation, at a cost of $15.5m and has acquired the other, in Savannah, Georgia, from a privately owned company, for $5.6m.
In addition BBA's commercial aviation subsidiary ASIG has acquired Ontario Aircraft Services ("OAS"), a services provider specialising in the freight and ground markets, from a privately owned company, for $14.5m.
Total annual revenues generated from these acquisitions should amount to approximately $30m and will be earnings enhancing in the first full year. All transactions are on a debt free basis. The considerations will be satisfied in cash out of BBA's existing resources.
The Bedford and Savannah acquisitions are part of Signature's strategy to increase FBO services at the major corporate aviation hubs in the North American market.
OAS has airport operations at seven western US locations including Los Angeles, Phoenix, Tucson and El Paso. Each of these locations is new to the ASIG network of more than 70 facilities in North America and the rest of the world. They provide an opportunity to extend the range of ASIG and other BBA aviation services at the seven locations. The acquisition will also help ASIG increase its presence in the growing cargo market.
The planned opening of the FBO at Toulon in 2003 establishes BBA with an important presence in Southern France, a busy area for corporate aviation. The £5m expansion of the Luton hangar, work on which will commence in the second half of 2003, will help to maintain its position as Europe's leading FBO.
Both investments highlight BBA's commitment to extend the Signature network of FBOs at the main European destinations where it believes there is potential for substantial growth.
Commenting on the acquisitions and investment plans, Roy McGlone, BBA Chief Executive, said:
"The acquisitions and investments announced today underline BBA's commitment to expand our presence in markets with potential for steady growth and high margins. Our aim is to grow the aviation business to provide a balanced portfolio with strong capacity to generate good returns."
Enquiries
Roy McGlone, Group Chief Executive, BBA Group PLC, 020 7842 4900
Andrew Wood, Group Finance Director
Mike Smith /Catherine Bertwistle, Brunswick Group, 020 7404 5959
2004 Preliminary Results Presentation, 23rd February 2005